U.S. challenges Indonesia’s ag products restrictions

Friday, January 11, 2013

The United States has asked the World Trade Organization for consultations with Indonesia under the dispute settlement provisions concerning restrictive trade measures applied to imports of horticultural products, animals, and animal products.
According to the Office of the U.S. Trade Representative, Indonesia has created a “complex web of import licensing requirements that have the effect of unfairly restricting U.S. exports. These measures appear to be designed to protect Indonesia’s domestic agriculture industry.”
“It has become a serious impediment to U.S. agricultural exports entering Indonesia, reducing Indonesian consumers’ access to high-quality U.S. products,” said U.S. Trade Representative Ron Kirk in a statement.
In late 2011, Indonesia passed regulations establishing strict non-automatic import licensing requirements for horticultural products. Those regulations were revised in September 2012 to include even stricter requirements for these imports. The affected products include, but are not limited to, fruits, vegetables, flowers, dried fruits and vegetables and juices.
Indonesia has long maintained a similar non-automatic import licensing and quota regime for beef and other animal product imports. The country recently announced significant reductions in quotas for beef and other animal product imports, further restricting access to the Indonesian market.
Consultations are the first step in the WTO dispute settlement process. Under WTO rules, if the matter is not resolved through consultations within 60 days, the United States may request the establishment of a WTO dispute settlement panel.